This article is part of a series on 13 money resolutions for 2013. As we work together on your financial goals for the year, we’ve already looked at trimming unnecessary expenses from your budget. However, regular monthly expenses can be easy to overlook. While essentials like electricity, heating, gas, and internet are necessary, it’s worth reviewing other recurring costs like cable and gym memberships.
Consider your monthly memberships (gym, magazines, alumni associations, etc.). Are you actually using these services enough to justify their cost? For instance, if you’re not regularly visiting the gym or watching enough TV, could these expenses be hindering your debt repayment or delaying your financial independence?
Some fees, such as monthly banking fees or unlimited local call fees on your mobile, might seem standard. Yet, some banks offer free banking, and you might not make enough local calls to justify the fee on your cellphone plan. Providers often add unwanted or unnecessary fees, like a $3 “sos” concierge fee that offers little value but gets charged unless you request its removal. Review your insurance plans as well, since phone insurance may be redundant if you already have coverage through your credit card or home insurance. Only keep the essential ones.
When it comes to utility bills, switching providers can lead to significant savings. Online calculators can help estimate the savings from switching, and some services even manage the switch for you. Saving $20 a month on your electric bill adds up to $240 annually. If you like your current provider, call and ask for a better deal by mentioning you might switch.
Regarding mortgage or rent, it might be time to search for a better deal or negotiate. Tenants can request a rent freeze or reduction at the end of a lease. Homeowners should look for refinancing deals to secure the best interest rates, significantly impacting long-term savings.
Don’t stop there. Look for fee-free credit cards, cards without ATM fees, streaming services over cable, supermarket cards you use frequently, or share memberships with friends and neighbors. Also, consistently review your insurance premiums—whether personal, car, or travel insurance.
In summary, carefully review all your monthly expenses. Maintain what you absolutely need, use fully, or cannot reduce. This review process is straightforward: calling your utilities company shouldn’t take more than 10 minutes, and comparison websites are user-friendly, sometimes offering cashback for switching.
If your budget is already well-managed, direct the savings into a separate account automatically. This approach targets savings you won’t miss since you’re already spending that amount monthly. It could also be a way to accelerate debt repayment.
Have you recently eliminated unused services or reduced your monthly bills?